(Natural News)—Securities and Exchange Commission (SEC) Chairman Gary Gensler has warned that rapidly advancing artificial intelligence (AI) could cause a financial crisis that is “nearly unavoidable” in the next decade if left unregulated.
According to the SEC chairman, the lack of diversity in AI technologies used by multiple institutions could one day pose a significant threat to U.S. financial stability. He predicted during an interview with the Financial Times that this AI-fueled crisis could occur in the late 2020s or early 2030s.
“I do think we will, in the future, have a financial crisis,” the SEC head warned. “Maybe it’s in the mortgage market, maybe it’s in some sector of the equity market. And in the after-action reports, people will say ‘Aha, there was either one data aggregator or one model we’ve relied on.'”
While Gensler acknowledged the necessity of regulating AI, he nevertheless admitted that doing so is a “hard challenge.” He continued: “It’s a hard financial stability issue to address because most of our regulation is about individual institutions, individual banks, individual money market funds, individual brokers. It’s just in the nature of what we do.
Gensler urges regulators to “tame AI”
Several areas identified by the SEC chair where AI could potentially destabilize the financial system are as follows:
- Algorithmic trading: While AI-driven trading can optimize returns and reduce costs, it can also lead to flash crashes and market manipulations if not properly regulated.
- Credit assessments: AI’s role in determining an individual’s creditworthiness can sometimes be opaque. Without clear guidelines, there’s a risk of unfair or biased decisions that could have far-reaching consequences for consumers. (Related: Conservative chatbot creator says OpenAI tried to censor content forcing them to abandon platform.)
- Data privacy: With AI systems relying heavily on data, there’s an increased risk of data breaches and misuse. Protecting consumer data should be of paramount importance. (Related: Italian data privacy watchdog accuses ChatGPT of scraping people’s data.)
Gensler has urged regulators to take proactive measures to mitigate the potential threats AI poses to financial stability and rein its use.
Seeking to rein in the use of AI, the SEC proposed new rules that would require broker-dealers and investment advisers to:
- Evaluate whether using certain AI technologies (i.e., predictive analytics and similar technologies) in investor interactions involves a conflict of interest in a way that puts the firms’ interests above those of investors.
- Address “conflicts of interest” issues arising from their individual use of predictive analytics by employing tools believed to address these risks that are specific to the particular AI technology they use.
- Eliminate or neutralize the effect of any such conflicts.
- Have written policies and procedures to achieve compliance with the proposed rules.
- Keep books and records related to these requirements.
However, Gensler told the Financial Times that the proposed rule does not solve the “horizontal issue.”
While various open-source AI technologies exist, most entities currently rely on a small number of tools and base their decisions on the same underlying base models or underlying data aggregator models developed by a group of players, such as Open AI’s ChatGPT, which could “lead to herd mentality and undermine financial stability.”
Visit FutureTech.news for more stories about the dangers of AI. Watch this video about SEC Chairman Gary Gensler’s warning about AI being responsible for the next financial crisis.
This video is from the Daily Videos channel on Brighteon.com. More related stories:
- Creatives push back against generative AI’s theft of their work and call on Big Tech to fairly compensate them.
- ChatGPT AI taught to single out “hateful content” by silencing whites, Republicans and MEN: Research.
- Italy bans ChatGPT over privacy concerns.
- AI spy program launched to monitor global bank transactions for “money laundering,” but people know it’s just an EXCUSE to surveil their private accounts.
- Google Cloud launches AI-powered anti-money laundering tool for banks, paving the way for Orwellian financial surveillance.
Sources include:
For Emergency Preparedness, Don’t Forget the Meds
Being prepared is more than just a good idea—it’s essential. We stock up on non-perishable food, bottled water, flashlights, and first-aid supplies, but one critical aspect often gets overlooked: access to vital medications. What happens if pharmacies close, prescriptions can’t be filled, or you’re cut off from medical care during an emergency?
That’s where Jase Medical steps in, offering a reliable solution to ensure you and your family have the medications you need when it matters most.
Jase Medical specializes in emergency preparedness kits designed to provide peace of mind through physician-reviewed, prescription medications delivered right to your door. Their flagship product, the Jase Case, is a comprehensive emergency antibiotic and medication kit priced at $289.95.
This kit includes 10 essential medications—five life-saving antibiotics and five symptom relief meds—that can treat over 50 common infections and illnesses, from urinary tract infections and pneumonia to skin infections and traveler’s diarrhea. With 28 add-on options available, you can customize the kit to fit your specific needs, including a KidCase for children ages 2-11.
The process is straightforward and hassle-free. Simply visit Patriot.tv/meds, complete an online evaluation, and have your order reviewed by a board-certified physician. Once approved, the medications are shipped discreetly from a licensed pharmacy to your U.S. address (with plans for Canada shipping coming soon). Each kit comes with detailed Med Cards outlining symptoms, dosing, and usage, making it easy to administer even in high-stress situations. These medications are shelf-stable and designed for long-term storage, empowering you to handle medical emergencies without relying on external help.
For those on the move, Jase Medical also offers the Jase Go kit for $129.95, a compact travel med kit covering over 30 common conditions encountered during adventures or trips. And for ongoing needs, Jase Daily provides an extended supply of your prescribed chronic medications to safeguard against disruptions in supply chains or extreme weather events.
Don’t just take our word for it—thousands of satisfied customers have given Jase Medical a 4.9-star rating, praising its role in true preparedness. As radio host Glenn Beck warns, “The supply lines for antibiotics already are stressed to the max. Please have some antibiotics on hand… You can do it through Jase.”
Whether you’re prepping for a hurricane, a power outage, or simply the uncertainties of daily life, Jase Medical ensures you’re not caught off guard. Head to patriot.tv/meds today to customize and order your emergency kit—because when it comes to your health and safety, it’s better to be prepared than sorry.